You and several friends are stranded on a desert island. the group decides to gather coconuts. being afraid of heights, the grou
p decides that the best way to gather coconuts would be to knock them down by throwing rocks at them. later, it is decided to build a catapult to hurl the rocks into the tops of the palm trees. how would economists classify the rocks and the catapult?
Rocks are land, and the catapult is capital since it had to be built by people.
Explanation:
According to a different source, these are the options that are included with this question:
Rocks are just rocks, and the catapult is land since it’s made of wood.
Rocks and catapults are both capital because they are used as tools.
Rocks are land, and the catapult is capital since it had to be built by people.
Rocks are labor because people had to throw them, and the catapult is entrepreneurship because someone had to design it.
Rocks and the catapult are both land since they both originated in the earth.
This question refers to the factors of production. Factors of production are the inputs that are necessary in order to create a particular good or service. These can include land, labor, entrepreneurship and capital. These concepts were developed by economists such as Adam Smith and Karl Marx. In this example, the rocks would be considered land, while the catapult would be considered capital, as it was built by people.
Capital is a way of having land and labor to be involved for
production. In the given scenario above, the catapult and rock would be a
capital since it is needed to be made by people in order to gain something or
it is used for production.
Later movers do not face high growth markets. Later movers are also referred to late followrs or later market entrants. These businesses enter the market after the market has been established. By joining the market later, they have an advantage because they can see what kinks have been worked out by other companies, what has worked and was hasn't worked.
